Good morning traders
Last week we went long gold at 1295 targeting the formation of a head and shoulder pattern around 1301. Four days later and we see that right hand shoulder pattern forming and therefore look to short gold at market level.
If you look at our chart work on the uk trading view website you can see four failed attempts on 4 hourly charts to...
Along with upcoming events the head and shoulders shows a high potential for a secure long sell position against the Yen.
I would sell upon the confirmation of the right shoulder. I will post a clear signal once the shoulder fully forms and continue on the reverse of the trend.
The head and shoulder in EURUSD is now completed and potentially the pair could be in much lower level by year end ahead of Fed interest rate decision. There are several other price action indicators that suggest EURUSD could go lower and we think it this trade present a good risk and reward opportunity.
Firstly some fundamentals. Basic materials have dropped 4.4% in the last month and 5.7% in the last week. In this sector mining has seen a 7.83% drop in the last week and 12.49% in the last month (source finviz and stockcharts.com). This specific stock has performed worse with a weekly drop of 8.23% and 14.02% monthly. This gives an overall picture of weakness at...